Mexico planning to introduce its CBDCs by 2024

The recent statement of the Mexican government showed that they are planning to go with blockchain technology to bring modernisation in financial services. 

In the present time, the majority of the dominant Central banks are planning to adopt Central Bank Digital Currency (CBDCs). To adopt the technology of blockchain, majority of the Central banks are doing their own research and development works in collaboration with the Fintech firms. There are few countries in the world that have already introduced their own CBDCs. China was the first to bring its Digital Yuan, e-CNY or Chinese CBDCs. Recently Nigeria also introduced its CBDCs but still under a particular number of users and it will take time to come into use publicly. 

On 30 December, The government of Mexico announced their plan to bring the Mexican CBDCs in the next 3 years. Through Twitter, the Government announced that the Central Bank of Mexico will have its own CBDCs because this innovative technology is much better to bring advancement in the traditional payment system. And also noted that such type of adoption will bring great financial inclusion in the country. 

El @Banxico informa que hacia 2024 tendrá una moneda digital propia en circulación, por considerar de suma importancia estas nuevas tecnologías y la infraestructura de pagos de última generación como opciones de gran valor para avanzar en la inclusión financiera en el país.

— Gobierno de México (@GobiernoMX) December 30, 2021

This announcement of CBDCs initiative of the Mexican government is coming just after the recent statement of Jonathan Heath, Mexico Deputy Governor, in a video conference. The Governor said that the Central Bank has a timeline of around 2024 to bring its own CBDCs. 

“Perhaps by the end of 2024 at the latest we should have (the CBDC)operating perfectly well.”

Crypto legality in Mexico 

In the present time, there are no fixed laws or regulatory frameworks, which can regulate the crypto industry. We can say that the Crypto industry is under a grey region in Mexico. However, there are traditional rules, which are applicable to crypto services and against money laundering activities. 

In July of this year, many Politicians showed their initiative in the Bitcoin and also Bitcoin-based payment proposal but later not much information further leaked about it. However, these types of initiatives & activities in Mexico were enough to show the government of Mexico will bring regulation laws, instead of following crypto ban laws like china. 

Read also: